CORPORATIONS - General principles - Shareholders

December 5, 2017, 8:33 AM EST

Appeal by the defendants from a chambers judge's refusal to strike the plaintiffs' claims. The plaintiffs were former shareholders in a mortgage investment corporation for which the defendants provided financial management services. Any net income earned by the company was distributed to shareholders via dividends. The plaintiffs alleged the defendants mismanaged the company's mortgage portfolio. They sued, seeking an accounting of $3.7 million in management fees paid by the company to the defendants. The defendants applied to strike the claims based on the rule in Foss...